May 26 - Members
of U.S. Congress Are Advocating the “Mother of all Subsidies”

The
American people would be saddened and sickened to learn that some Members of
Congress not only put their own personal interests before their constituents’ but
also can go much further and inflict financial harm on the traveling public,
mid-size communities and those seeking employment in the travel and tourism
industry.

Members
are allowed to double and triple book flights home from Washington and pay
nothing week in and week out for multiple changes while, in contrast, ordinary
citizens can pay hundreds of dollars to make just a single flight change.

Airlines
cultivate a cozy relationship with Members through that practice as well as
special reservations desks that begin the very exceptional treatment Members
receive throughout the entire travel experience. Airlines are repaid handsomely
when they receive generous legislative support and when Members sign letters
that airline lobbyists put before them.

While
this convenient relationship substantially undermines credibility, specifically
of a recent letter that 262 Members of the House of Representatives signed on
behalf of the BIG 3 U.S. airlines - American, Delta and United - it
nevertheless underscores what is so very wrong with Washington’s unyielding
focus on its own interests and those of Special Interests at the expense of everyday
consumers.

The
BIG 3 claim that the Gulf airlines -- Emirates, Qatar and Etihad - receive
government support that is harming the U.S. carriers. The Congressional letter supports
the BIG 3’s call for a freeze in new air services by the Gulf airlines -- all
without having allowed those carriers an opportunity to respond to the allegations,
not to mention the glaring hypocrisy that the U.S. airline industry, by the BIG
3’s very own math, has been the most heavily taxpayer subsidized and
structurally advantaged in history of commercial aviation.

Now
that U.S. airlines have secured antitrust immunity for their global alliances
and achieved radical consolidation of the U.S. airline industry, they want to
block new competition. Members are all too willing to lend a hand in this building
of “Fortress America” first by supporting U.S. airlines’ continuing quest to
prevent Norwegian Air International from introducing new competitive flights to
the U.S. and second by endorsing the airlines’ overarching strategy to increase
profits by foreclosing on new competition from the Gulf carriers.

If
successful in frustrating foreign carrier new entry and robust competition,
then Members of Congress will have inflicted financial injury on virtually all Americans
through the “Mother of all Subsidies” -- artificially higher airfares and fees.
What’s more, Members will be responsible for lost travel and tourism jobs and reduced
economic development for mid-sized communities due to lost connectivity to the
world’s important business centers and emerging markets.

When
it comes commercial aviation, antitrust and competition policy, the consumer
represents the North Star; policy needs to be in alignment with consumers’
interests. Moreover, in the U.S. free enterprise system, consumers have sovereignty
-- the power or freedom to have final say. In the end, consumers determine
whether any business succeeds or fails. Government protectionist policies rob
consumers of this power and distort markets. No market in the world is fair; to
succeed market participants must play to their unique strengths and advantages.
Members of Congress need to understand this and act accordingly and in the best
interests of consumers.